RXO Announces Offering Of $350M Shares Of Common Stock, Intends To Use Proceeds To Finance The Acquisition of Coyote Logistics From UPS
Portfolio Pulse from Benzinga Newsdesk
RXO has announced a $350 million common stock offering to finance the acquisition of Coyote Logistics from UPS.
September 09, 2024 | 12:19 pm
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RXO is issuing $350 million in common stock to fund its acquisition of Coyote Logistics from UPS.
The issuance of new shares typically dilutes existing shareholders, which can lead to a short-term decrease in stock price. However, the acquisition of Coyote Logistics could be strategically beneficial in the long term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
UPS is selling Coyote Logistics to RXO, which could impact UPS's business operations and financials.
The sale of Coyote Logistics may streamline UPS's operations and provide capital, but the impact on UPS's overall business is uncertain without further details.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70